How to Avoid Bad Faith Action by Your Insurance Company (Continued)
Consumers should also apply this type of ongoing diligence to their current policy documents. Your needs may shift and policy terms may be amended over time.
Industry experts suggest reviewing your insurance policies annually, with an insurance agent and/or insurance lawyer.
The nature of bad faith action by the insurer is that it can be hard to detect.
Loopholes may be buried in unclear policy jargon, or delays in claim approvals may be rationalized. Either of these bad faith motivations for not paying what your policy states is illegal, and you may be able to win your claim in court. If you do suspect your insurance company of misdeeds, consult an attorney as soon as possible.
Legal claims of bad faith must be filed by certain dates, according to your state law.
Fulfill Your Policy Obligations
Don’t give your insurance company an excuse to deny your claim. Report truthfully, and release information that you are required to share by law. Know your coverage limits, and you’ll avoid filing claims that are not your insurer’s responsibility. By staying up to date on the language in your insurance agreements, you’ll be able to follow the timeliness and disclosure rules. When you display your good faith, it puts pressure on the other party to fulfill its promises and responsibilities.
Keeping accurate records of case histories is another way to keep insurance companies in line. Take notes on any phone conversations regarding your insurance claim, and request written notification of any important decisions or offers. If you do have to go to court to recover your money, good records will give your lawsuit an advantage.
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